Alpha Beta Company Has a Sales Budget for Next Month

question 154

Multiple Choice

Alpha Beta Company has a sales budget for next month of $50,000. Cost of goods sold is expected to be 60 percent of sales. All goods are purchased in the month used and paid for in the month following their purchase. The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired. Beginning accounts payable is $13,000.
How much merchandise inventory will Alpha Beta Company need to purchase next month?

• A)$29,000
• B)$29,500
• C)$30,000
• D)$30,500

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Definitions:

Impulsive Behaviors

Actions undertaken without forethought or consideration of the consequences, often driven by immediate gratification or emotional impulse.

Adaptive Problem-Solving

A cognitive process that involves finding effective solutions in new and changing environments.

Reacting Negatively

The process of responding with emotions or actions that are pessimistic or adverse toward stimuli or events.

Psychopathy

Set of broad personality traits including superficial charm, a grandiose sense of self-worth, a tendency toward boredom and need for stimulation, pathological lying, an ability to be cunning and manipulative, and a lack of remorse.